Friday, April 22, 2016

The state will inject 3 billion euros in EDF – The World

Le Monde | • Updated | By

the state funds have’m quite empty, the government decided to fly to the rescue of one of its key public enterprises, EDF. The State shareholder will inject 3 billion euros into the electrical company in a forthcoming capital increase. The decision was taken at the EDF Board held Friday, April 22 afternoon.

To exit the EDF group financial risk zone in which it is located, the council approved the principle of a recapitalization of a total of 4 billion euros by the end of the 2016 accounts, that is to say, in February 2017. the State will subscribe there for 3 billion euros. As he has done this year, he has also perceive dividends the next two years in shares and not in cash. So that in total, the share of the state in the capital of EDF should remain stable at 85%.



austerity plan

three other measures adopted by the Board will add to the effort of the state to enable EDF to better reflect the shock of falling electricity prices in Europe. The first is to harden the savings plan announced earlier this year. Instead of its costs of € 700 million by 2018, EDF now intends to cut more than 1 billion euros in 2019. This austerity plan should cover the costs of operation, purchases, etc., without increasing the number of job cuts already planned (around 3500).

the second largely discussed for several months, is to sell assets. The figure is now official: EDF intends to sell 10 billion euros of various assets, part of his shares in the electricity transmission network (RTE), the manager of the power lines. coal plants in Poland and activities in the exploration and production of hydrocarbons may also be transferred.

Finally, the power company plans to cut ( “optimize” according to the vocabulary house ) investments. They will fall by 2 billion euros per year by 2018, falling to around 10.5 billion euros.



The launch of deferred EPR project

This brake on expenditure does not apply to large strategic projects such as the deployment – challenged enough – the Linky meter or the possible construction of two nuclear reactors at Hinkley Point in Britain. This gigantic project, valued conservatively at 24 billion euros, but will not be launched in the coming days as claimed by the Minister of Economy, Emmanuel Macron.

Faced with hostility a large part of EDF employees and all unions, CEO Jean-Bernard Levy has chosen Friday to postpone the decision and take the time to engage with the works council on this strategic topic. So the project will not be launched for several months at best

Read also:. EDF postponed by several months the launch of the EPR project in Britain

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